It’s understood he had picked up the girls, aged seven and 10, from Baranduda Primary School shortly before the crash occurred at Leneva.

Students, parents and teachers at Baranduda Primary School have been offered counselling.

The 40-year-old driver was medically discharged from the force in 2008 due to epilepsy.

He was flown to The Alfred hospital in Melbourne in a critical condition after the crash occurred at 3.50pm.

A hospital spokesman said yesterday the man’s condition had progressed to serious but stable.

Inspector Tony Davis said the crash was a “confronting and disturbing” scene for the father’s former colleagues.

“However, our thoughts are with the family at what is just an indescribably terrible time for them,” Insp Davis said.

He said it was not yet known why the silver Holden Commodore sedan ran off the Baranduda Boulevard and hit a tree.

The force of the collision tore the car in two and both girls died at the scene.

“The collision is under investigation by the Major Collision Investigation Unit detectives — it’s still fairly early in their inquiries,” Insp Davis said.

“It’s something we see quite frequently in country areas where cars leave roadways and strike trees, but it’s something I wouldn’t like to comment on with the cause.

“It’s still under investigation.”

He said two other drivers came across the crash first and stopped to help.

Insp Davis said police were seeking anyone who had seen the car before the crash as it might help piece together the movements of the vehicle.

Anyone with information should phone Wodonga police on (02) 6049 2600 or Crime Stoppers on 1800 333 000.